Bitcoin rallies as bulls prevail

Bitcoin rallied on Thursday, attempting to reclaim the key $65,000 level after plummeting to $63,000. Bitcoin price went into freefall on Wednesday, which continued early on Thursday, but the fall was arrested later on Thursday. Bitcoin rallied on Thursday as bulls prevailed, reversing the downtrend. If the BTC price declines, support can be found at $60,000 again, while resistance may be encountered near $68,000. 

Ethereum price also dropped in early trading on Thursday but pared losses later in the day, rising to the $3,180 level. If Ethereum's price declines, it may encounter support near $3,000, while if it increases, resistance may be encountered near $3,300.

Bitcoin recently reached a new all-time high of $73,800. Bitcoin’s bullish run has renewed interest in crypto markets, boosting other cryptocurrencies as well. Bitcoin has encountered significant selling pressure, however, causing increased volatility in the past weeks as bulls wrestle with bears. 

Bitcoin underwent a ‘halving’ during the weekend, boosting its price. Every halving event cuts the rate at which new bitcoins are released into circulation in half, increasing the scarcity value of Bitcoin. This was the fourth halving event in the history of Bitcoin and markets have been anticipating the event for some time. The Bitcoin halving event, however, had already been priced in weeks ago, boosting the value of the cryptocurrency to an all-time high. As a result, the markets’ reaction to the event was somewhat muted. 

Crypto markets have been under pressure by the escalation of hostilities between Israel and Iran. Fears that the war will spread in the Middle East are promoting a risk aversion sentiment putting pressure on risk assets such as cryptocurrencies. The crisis between Israel and Iran seems to have been diffused for the time being and renewed risk sentiment propped up crypto markets this week.

Cryptocurrency prices are also affected by central banks’ interest rates. High-interest rates are putting pressure on risk assets, while the promise of rate cuts boosts crypto markets. The US Federal Reserve kept interest rates unchanged at its latest policy meeting in March, within a target range of 5.25% to 5.50%. Odds of rate cuts are becoming more moderate, boosting crypto markets, as policymakers have stated that they intend to start reducing interest rates slowly.

BTC/USD 1h Chart

ETH/USD 1h Chart

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Written by:
Myrsini Giannouli

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